"This perception has been intensified by market concerns over the extended period of time that it would take to complete the transaction and realise longer-term returns from the Intu Acquisition".
But the takeover target said Hammerson's explanations for why it was urging shareholders to ditch the deal was "unsatisfactory", noting that Hammerson had reaffirmed its intention to go ahead with the deal as recently as March 19.
David Atkins, Chief Executive of Hammerson, said that over the last five months, the financial strength of retailers and other tenants in the United Kingdom had softened with retailers entering into administrations or CVAs, while consumer confidence had also remained subdued. "The trading update issued yesterday underlined the key strengths of Intu's business".
Notwithstanding this the Hammerson Board has now concluded that the proposed Intu Acquisition is no longer in the best interests of shareholders. "As a result, the board has concluded that the heightened risks associated with the Intu acquisition outweigh the long-term rewards". "Intu will further update shareholders in due course on its plans".
"In recent weeks", Tyler continued, "investors have told us they share our view of the exceptional quality of our portfolio and that they have great confidence in our management team".
Hammerson said it was confident in its prospects as a standalone business and was reviewing options to boost shareholder value.
Shopping centre giant Hammerson has called off its £3.4bn mega-deal with Intu, citing the weakness of the current market.
Before news broke of Klepierre's bid last month, Hammerson had slumped about 20 per cent this year after a slew of bad news from the high street caused retailers and restaurant groups to close stores, slow openings or cut rent bills. Hammerson shares went up 17.4p to 511p. An approach from Klepierre with a £5bn takeover offer for Hammerson, which it later abandoned, also put a spanner in the works.